The Deep Specialization™️ Podcast

The Evolution of Agency M&A: Why Specialists Command Higher Valuations with Todd Taskey


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In this episode, Corey speaks with Todd Taskey, an investment banker with over 20 years of experience specializing in agency M&A transactions. Todd shares invaluable insights about how modern agency transactions work and why vertical specialization can lead to better valuations and opportunities.

Episode Highlights:

  • Why traditional "exit and earn-out" deals are being replaced
  • How vertical specialists often command more attention from buyers than generalist agencies
  • The critical metrics buyers evaluate: retention rates and recurring revenue
  • Why having a sales function is crucial for agency growth and valuation
  • Common financial mistakes that can derail transactions
  • The importance of proper financial reporting and accrual accounting
  • How to prepare your agency for a future transaction
  • Key Insights:

    • Most successful agency transactions today involve getting both cash at close and equity upside in the acquiring company
    • Buyers are increasingly focused on creating an "arc of services" rather than just rolling up similar agencies
    • Agencies with $1M+ EBITDA and strong vertical focus often have more strategic options
    • The "fill in the blank" problem each agency needs to solve beyond just money
    • Why running a "good enough" business may be holding you back
    • Looking to sell your agency and maximize its value but not sure where to start? This episode is a must-listen.

      The resources mentioned in this episode are:

      - Connect with Todd on LinkedIn: https://www.linkedin.com/in/toddtaskey 

      - Check out Potomac Business Capital: https://potomacbusinesscapital.com

      - Listen to SecondBitePodcast: https://potomacbusinesscapital.com/podcast

      - Email Todd at [email protected]


      👍If you liked this episode, please rate and review us on Apple Podcasts, and be sure to hit the subscribe button! 🔔
      😡Frustrated with a lack of results from outbound? I'd like to give you my free 6-day email course that will transform your outbound program from broken to consistently driving new sales opportunities. Sign up here: GetOutboundROI.com.
      This episode is sponsored by E2M, the #1 white-label partner for digital agencies. Visit https://www.e2msolutions.com/the-deep-specialization-podcast to get 20% off your first month.

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      The Deep Specialization™️ PodcastBy Corey Quinn

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